Life not credit has become an indispensable part of everyday life. Loans are more affordable and interest rates lower than they have been in recent decades. But not as low as they are in other EU member states. Interest rates are in the lower bounds for long-term special purpose loans such as home loans, while they are much higher for non-purpose cash loans.
What are the most popular loans?
In spite of the above, non-purpose cash loans are by far the most popular option for fast loans. They owe their popularity to the fact that a client can spend money at whatever he wants, without being dictated by the financial institution where the loan was given. The money is paid out as soon as possible, provided that all conditions of the financial institution are satisfied.
They are usually characterized by smaller amounts, a short repayment period and a fixed interest rate. The interest rate is unchanged primarily because of the short repayment period. Non-purpose cash loans are used to close current account defaults, repair home damage, repair cars, unplanned trips, and the like.
The home loan market has been booming in recent years
In the last few years, since the government subsidized the purchase of the first real estate, the demand for home loans has increased. These are special purpose loans with a low interest rate and a repayment term of more than 10 years. Such loans are issued in kuna and euro depending on the client’s wishes.
As a security instrument, given that these are large amounts, banks most often seek a mortgage on a property, life insurance policy and / or guarantor / co-debtor.
How to get a loan from a bank and how to get a loan from a bank?
Banks have much more rigorous conditions when it comes to lending. They rely on the credit reports and the creditworthiness of the client, which depends on several factors: amount of income, debt, type of employment contract, employer status and the like. Already at the very beginning, many citizens were eliminated, which was due to a fixed term speech and because of the poor condition of the employer.
Credit houses are much more flexible about this, which is why their client pool is expanding. Credit companies request a loan from a client applying for a loan. This implies that clients have a decent income and regularly settle their debts. The type of employment contract and the state of the employer do not affect the loan.
Online Payday loans – a financial treat that makes life easier
New on the Croatian market are online payday loans. They were the first to be introduced by credit houses, and have recently been offered by banks. Credit houses provide everything from applying for loans to online. For the time being, banks only allow online filing, while further proceedings can only be carried out in the rules of procedure.